ST. PAUL, Minn., March 2, 2011 /PRNewswire/ -- CHS Inc., (Nasdaq :CHSCP ) a leading energy, grains and foods company, announced today it is investing $26 million in enhancements to strengthen its refined fuels supply infrastructure in the northern plains region.
The company will undertake nearly a dozen projects over the next three years to expand storage capacity at its terminals, improve and expand truck loading facilities, enhance ethanol blending and streamline loading technology systems.
"The customers we serve from our Laurel, Mont., refinery have experienced significant refined fuels demand growth in recent years, particularly for diesel fuel," said Jay Debertin, CHS executive vice president and chief operating officer, Energy and Foods. "These investments support our long-term commitment as a reliable supplier of quality fuel products to our customers and will enhance the overall efficiency of our distribution system."
Projects planned or underway include:
- Minot, N.D. -- Construction of a third truck loading rack, installation of new pumps and piping to increase truck loading rates by 125 percent, incorporation of a more efficient ethanol blending system and improved efficiency of bill of lading systems. Those individual projects will be completed between summer 2011 and the end of 2012. CHS currently is building two 120,000-barrel tanks at the Minot terminal which are designed for storage of a variety of fuel products, with completion slated for fall 2011.
- Glendive, Mont. – Upgraded rail car unloading systems, installation of new pumps and piping to increase truck loading rates by 50 percent, incorporation of a more efficient ethanol blending system and improved efficiency of bill of lading systems. The individual projects will be completed between summer 2011 and mid 2012.
- Laurel, Mont. – Installation of two-120,000 barrel storage tanks at the refinery to be completed in early 2012. CHS also is conducting an engineering study on replacement of an existing truck loading rack at its Laurel refinery.
In addition, by the end of 2011 CHS will have replaced nearly three-fourths of its 237-mile Laurel-Glendive, Mont., refined fuels pipeline during the last decade with higher capacity pipe, installed a $400 million coker which has increased diesel fuel production by 10 percent, and completed other process improvements to boost refinery output.
CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 100 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders across the United States. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex® brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.
This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2010, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.
SOURCE CHS Inc.